What is the amount of the trade discount on merchandise that a vendor can receive with a list price of $7,700 and a trade discount of 20.5%?
1578.50
Well, let's do a little arithmetic together, shall we? If the list price is $7,700 and the trade discount is 20.5%, then we need to find 20.5% of $7,700.
Now, to do that, let's imagine the vendor is a magician and magically transforms the number 7,700 into a bunny rabbit. Now, this bunny rabbit represents the full amount. *poof*
Next, my dear friend the magician decides to perform a disappearing act with 20.5% of the bunny rabbit. So, he takes out his magic wand and *poof* - 20.5% of the bunny rabbit vanishes into thin air!
Now, let's see what's left of our poor bunny rabbit. Well, lo and behold, after the magician's trickery, we have $1,578.50 left of our bunny rabbit friend.
So, to answer your question, the amount of the trade discount is $1,578.50. Now, if only we could make that bunny rabbit reappear... *sigh*
To calculate the amount of the trade discount, you will need to multiply the list price by the trade discount rate.
First, convert the trade discount rate from a percentage to a decimal by dividing it by 100:
20.5% / 100 = 0.205
Next, multiply the list price by the trade discount rate:
$7,700 * 0.205 = $1,578.50
Therefore, the amount of the trade discount on merchandise is $1,578.50.